Commercial Real Estate Concentrations – A Regulatory View

Posted on February 16, 2017 at 9:00 AM by Josh Thompson

The Office of the Comptroller of the Currency (OCC) also continues to voice its concerns about credit concentration in Commercial Real Estate (CRE—construction, non-residential mortgage, and multifamily housing). The OCC’s latest “Risk Perspective” publication layered in the OCC’s mixed CRE performance outlook – indicative of slowing property value growth, impending increase(s) in the cost of capital, and possible upticks in industry vacancy rates (particularly among the Apartment segment).

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Commercial Real Estate Concentrations – An Economist’s View

Posted on February 10, 2017 at 12:08 PM by Josh Thompson

I can’t help to notice the many trade journal articles published over the last several months covering the dramatic shift of industry asset allocations from commercial and industrial loans (C&I) to real estate loans. This long-term transition to Commercial Real Estate (CRE) has continued to accelerate over the last 30 or so years and is beginning to gain the attention of the industry, including regulators and skeptical economists.

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